It's Time For Facebook To Finally Start Paying Dividends.

  It's Time For Facebook To Finally Start Paying Dividends.   With user growth slowing and cash balance increasing, it's time for the social networking giant to turn their attention to the signs of return. A growth stock needs to examine whether it's time to start appealing to its investors as well. Facebook FB (NASDAQ) $355,12 -0,33 (-%0,09) has reached this point now. Indicators indicate that Facebook has had a strong financial report this earnings season. With the value increasing 56%, net income was more than doubled. Despite all this data, user growth is slowing down. The market should realize that it is not just a growth game as it was in the past, and it is time to become a growth and income game for investors. The time has come for Facebook's shareholders to rejoice.  

Actually it's complicated

  However, not everything is as bright as it seems. A closer look at Facebook's latest report reveals that user growth increased by only 7% last year. The same is true for interaction. The number of ads served by Facebook also increased by just 6%. In fact, the Company has warned that revenue growth will slow sharply sequentially through the next two reports, despite surpassing its popularity in revenue over the past four quarters.

It's Time For Facebook To Finally Start Paying Dividends.

  On top of all that, there's a recent update on Apple AAPL (NASDAQ) $146,70 +0,34 (+%0,23) iOS devices, focused on regulatory concerns and privacy, that makes it harder to target marketing messages on Facebook. There are currently only 4,66 billion people with internet access, and apparently 75% of them are already in Facebook's active user poll. All of this suggests that Facebook should start paying a dividend before it emerges as a slow-growing mature blue chip. The company has proven to be a money machine, generating $22,7 billion in free cash flow over the past year alone. Facebook is currently known to sit on more than $64 billion in cash. All attention is focused on the Company. It has therefore become clear that they must now initiate a dividend policy. Now that it has long been in a position to reward its shareholders for buying and retaining, it is time to rejoice.  

Source: The Motley Fool

 

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